In the latest close session, Advanced Micro Devices (AMD) was down 1.07% at $221.08. The stock's performance was behind the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.
Shares of the chipmaker witnessed a gain of 2.52% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.21%, and the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.31, indicating a 20.18% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $9.64 billion, reflecting a 25.88% rise from the equivalent quarter last year.
AMD's full-year Zacks Consensus Estimates are calling for earnings of $3.96 per share and revenue of $33.94 billion. These results would represent year-over-year changes of +19.64% and 0%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Advanced Micro Devices. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.13% higher. Advanced Micro Devices presently features a Zacks Rank of #3 (Hold).
Looking at valuation, Advanced Micro Devices is presently trading at a Forward P/E ratio of 35.71. For comparison, its industry has an average Forward P/E of 21.6, which means Advanced Micro Devices is trading at a premium to the group.
Meanwhile, AMD's PEG ratio is currently 0.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.85 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Advanced Micro Devices, Inc. (AMD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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